World Cotton News – March 4, 2024 

India

The South Indian Cotton Ginners Association has advised textile mills to avoid overbuying amid rising cotton prices, with global supply expected to pick up after July. Extreme cold weather in China has disrupted the cotton crop cycle, and declining acreage in the United States has led to global cotton shortages, causing world cotton prices to rise. Hence, farmers in the state are receiving prices slightly higher than the minimum support price. Nevertheless, this favorable shift might come too late for many farmers who had already sold their cotton at prices lower than the support price earlier in the season.

North India

On Monday, cotton prices in the North Indian market continued to rise. The prices had decreased by 25-50 rupees per maundy (0.016 $/kg). To get a better understanding of the cotton prices in different regions of North India, you can refer to the table below.

Central India

The price of cotton in the Indian central market did not change on Monday. The table below shows the cotton prices in various regions of central India.

Bangladesh

Cotton cultivation in Bangladesh is increasing (up by almost 2% to 46,000 hectares). Producers are striving to fulfill local demand and cut down on imports, yet they are disheartened by the low prices despite rising production costs. Despite rising cultivation costs for items like seeds, fertilizers, diesel, pesticides, and labor, farmers are getting lower prices than anticipated. Even with the growing demand for cotton, local production falls short, meeting less than 2% of the yearly need. This shortfall necessitates substantial imports, costing over $3 billion annually.

International

The recent surge in global cotton prices is primarily due to heightened buying activity in the stock market. Global cotton prices reached an 18-month peak, marking the most significant surge since September 2022. The price spike in February 2024 led to a 27 percent increase worldwide and a 16 percent rise in Indian cotton. Despite the decreased demand from textile mills, Indian cotton prices have increased significantly in the last two weeks. Global cotton production is projected to decrease by 355,000 bales in 2023/24, as reduced output in Australia and Benin counterbalance slight increases in other regions. Worldwide consumption is anticipated to stay relatively stable. India's cotton exports are poised to reach a two-year peak in February, rendering Indian cotton appealing to Asian buyers amid increasing global prices.